Bitcoin (BTC) has experienced an unprecedented surge, reaching an all-time high (ATH) following the election of Republican US presidential candidate Donald Trump. This article delves into the factors contributing to this rally and explores the potential for further growth in the crypto market under the new administration.
Add Crypto Exposure At The Earliest, Bernstein Tells Clients
The impressive gains of Bitcoin post-election have not gone unnoticed by industry experts. Analysts at trading firm Bernstein have expressed optimism about the broader crypto market’s potential, suggesting significant room for further expansion. Notably, in a client note dated November 11, Bernstein’s analysts encouraged clients to increase their exposure to digital assets “as soon as possible.”
Gautam Chhugani, leading the digital assets team at Bernstein, highlighted the promising outlook for the crypto market, stating, “Don’t fight this. Welcome to the crypto bull market – buy everything you can.” This bullish stance coincides with a notable 20% increase in the overall crypto market cap, rising from approximately $2.41 trillion to $2.92 trillion since Trump’s election victory.
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Chhugani also addressed concerns regarding regulations, urging crypto-skeptic investors to reconsider their stance on digital assets, given Trump’s pro-crypto position. Investors are encouraged to “invert their mental modal” in light of the favorable developments following Trump’s win.
Trump has consistently voiced his intention to replace the current US Securities and Exchange Commission (SEC) chair, Gary Gensler, shortly after assuming office. Gensler has been a contentious figure in the crypto industry, with many perceiving the financial regulator’s approach as hostile. A potential replacement with a pro-crypto SEC chair could usher in more supportive regulations for crypto businesses in the United States.
Among the speculated candidates for the new SEC chair is seasoned Wall Street lawyer Richard Farley, though this has not been confirmed. Furthermore, other prominent Republican leaders, including US Vice President JD Vance, RFK Jr., and Vivek Ramaswamy, have openly disclosed their Bitcoin holdings and pledged their support for the crypto industry under Trump’s administration.
No Reason To Not Hold Bitcoin Following Trump’s Win
Beyond Bernstein’s endorsement, Greg Cipolaro, head of research at New York Digital Investment Group, asserted that there is now no substantial risk in holding BTC following Trump’s victory. Cipolaro noted that with Republicans taking control of the White House and Congress, leadership shifts in major government agencies such as the SEC, OCC, FDIC, and Treasury are anticipated. These changes are expected to foster a more pro-crypto environment, viewing digital assets as opportunities for economic growth and innovation rather than regulatory hurdles.
Recent trading patterns in crypto exchange-traded funds (ETFs) suggest that institutional investors may already be positioning themselves for a potential parabolic rally in digital assets, particularly Bitcoin. Notably, asset manager BlackRock’s IBIT spot BTC ETF recently reported net assets of $33.2 billion, surpassing the firm’s gold-based ETF valued at $32.9 billion.
In a forecast made in October, Bernstein predicted that Bitcoin could reach $200,000 by the end of next year, labeling it a “conservative target.” Meanwhile, VanEck’s CEO offered an even more ambitious projection, suggesting that BTC could soar to $300,000 by the end of April 2025.
The increasing adoption of Bitcoin further supports its price potential. Tech giant Microsoft, in a recent filing with the US SEC, revealed that it is currently evaluating the possibility of investing in BTC. As of the latest data, BTC is trading at $81,912, marking a 2.8% increase over the past 24 hours. Additionally, BTC dominance in the market stands at 59.36%.
